Rishabh-Instruments-Limited-IPO
Rishabh Instruments Limited is the 7th company to launch an IPO in August 2023.
The IPO market was quite busy in the month of August 2023 and now the 7th IPO is set to hit the market in the last week of August 2023. The latest IPO offering is from Rishabh Instruments Limited which is a global energy efficiency company and has applications in diverse sectors.
Rishabh Instruments Limited IPO will open for subscription from 30th August 2023 to 1st September 2023.
Here are all the important details of Rishabh Instruments Limited, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of Rishabh Instruments Limited are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 30th August 2023 |
| IPO Closing Date | 1st September 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face value of shares | Re. 10 per share |
| IPO Price Band | Rs. 418 – Rs. 441 per share |
| IPO Size | Rs. 490.78 crores (1,11,28,858 shares) |
| Offer for Sale | Rs. 416 crores (94,28,178 shares) |
| Fresh Issue | Rs. 75 crores (17,00,680 shares) |
The important dates for Rishabh Instruments Limited IPO are highlighted below:
| Event | Date |
| Opening date | 30th August 2023 |
| Closing Date | 1st September 2023 |
| Allotment date | 6th September 2023 |
| Refund Date | 7th September 2023 |
| Share Credit Date | 8th September 2023 |
| Listing Date | 11th September 2023 |
Investors can subscribe to Rishabh Instruments Limited shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lotMaximum – 13 lots |
| Investment amount | Minimum – Rs. 14,212 – 14,994Maximum – Rs. 1,94,922 |
| Shares | Minimum – 34Maximum – 442 |
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investors | 35% |
| QIB (Qualified Institutional Buyer) | 50% |
| NII (Non-Institutional Bidders) | 15% |
This IPO is a combination of Offer for Sale and Fresh Issue. The objectives of the IPO are mentioned below,
Established in 1982, Rishabh Instruments Limited is actively involved in the manufacturing, design, and development of Test and Measuring Instruments as well as Industrial Control Products. Offering a diverse array of products, the company presents cost-effective solutions for energy and process measurement, control, analysis, and enhancement comprising a wide range of products. Furthermore, Rishabh Instruments delivers comprehensive resolutions for aluminium high-pressure die-casting, meeting the precise fabrication needs of clients in the automation sector, including automotive compressor and high-precision flow meter manufacturers, and precision component machining and finishing.
In 2011, Rishabh Instruments made a significant acquisition by taking over Lumel Alucast, a non-ferrous pressure casting firm located in Europe. This strategic move enabled the company to establish a robust presence in the manufacturing and supply of low-voltage current transformers. In addition to its core products, the company extends its services to include various manufacturing offerings like mould design and production, EMI/EMC testing, Electronic Manufacturing Services, and software solutions such as MARC.
Rishabh Instruments is structured into four distinct segments:
Operating across the world, the company possesses three manufacturing units and a global network of 270+ dealers, serving 70+ countries, alongside a domestic presence of 150+ dealers, spanning every state in India.
Rishabh Instruments Limited’s financials are given in the table below:
| Year | Total Assets (Rs. in cr) | Revenue from Operations (Rs. in cr) | Profit after Tax (Rs. in cr) | Basic EPS | Return on Net Worth |
| Mar-2023 | 649 | 570 | 50 | Rs.12.84 | 11.67% |
| Mar-2022 | 564 | 470 | 50 | Rs.12.91 | 13.82% |
| Mar-2021 | 512 | 390 | 36 | Rs.9.32 | 11.61% |
(Source: RHP)
Some of the key strengths of Rishabh Instruments Limited IPO that investors can take note of are
| Category | Details |
| Business model | RIL has a strong vertical integration bolstered by robust manufacturing prowess along with a varied product portfolio, renowned and established brands and a broad customer spectrum. |
| Other merits | They have been operating as a global engineering solutions provider within expansive markets, strategically poised to capitalize on major industrialization trends.The company has also demonstrated a history of effectively integrating acquired entities across different geographical locations. |
Here are some of the risks that investors of Rishabh Instruments Limited IPO should know:
| Category | Details |
| Business viability and profitability | The revenue generation of this company heavily relies on the unhindered performance of manufacturing facilities.Semiconductor supply shortages can have an adverse impact on operational results and financial status.The company has sufficient exposure to notable operational and financial risks due to dependence on subsidiaries. |
| Other concerns | The majority of IPO proceeds are allocated to Nashik unit expansion.Inadequate implementation of production schedules could significantly harm business and operational outcomes. Timely project completion is crucial for preserving company profitability and any deviation from the same will result in an adverse impact on the company as a whole. |
As of August 28th, 2023, the grey market premium for the shares of Rishabh Instruments Limited IPO is Rs. 32 as per market observers. This means the shares are expected to list at a premium of Rs. 32 per share over the listing cap price of Rs. 441.
Rishabh Instruments Limited has created a name for itself in the domestic as well as the global energy efficiency solutions market and precision engineering products. The top line of the company has shown consistent increase over the past 3 FYs while the bottom line was more or less stagnant in the previous 2 FYS. Hence, investors need to carry out a thorough analysis of the financial performance of the company and evaluate its fundamentals before making an investment decision.
Investors can invest in this IPO through the Fisdom app.
Many IPOs that were launched in 2023 gave substantial listing gains to investors. However, there is no guarantee that all IPOs will offer listing gains or turn out to be profitable investments. Investors must carefully read through company details and study its financials to gauge investment prospects.
GMP in IPO refers to the Grey Market Premium, indicating the difference between unofficial market trading price and the IPO offer price for a company’s shares before their official stock exchange listing.
Some of the new IPOs that were launched in Aug 2023 are Vishnu Prakash R Punglia Limited IPO, Aeroflex Industries Limited IPO, Pyramid Technoplast Limited IPO.
Some of the IPOs that may be launched on NSE and BSE are EbixCash Limited IPO, Tata Technologies, and Ratnaveer Precision Engineering Limited IPO.
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